Tesla Motors Inc (NASDAQ:TSLA) CEO Believes Model X and S Demand Will Top 100,000 Vehicles Per Year

Tesla Motors Inc (NASDAQ:TSLA) recently rolled out its first SUV, the Model X, and it was reported shortly after that the company was now focusing on the affordable Model 3, which will be unveiled in 2016 and produced in 2017. But in a recent interview, Tesla’s CEO Elon Musk, said he expected Model S and X demand to top 100,000 units combined.

Musk thinks the demand for the affordable Model 3, which is said to be coming with a $35,000 price tag, is going to be very good. The CEO added that the demand for its other vehicles, the Model S and X is pretty good and that over time the two could reach the hundred thousand units per year.

Model X and Model S

Model S and XThe Model X, which started being rolled out of the factory on September, was pre-ordered by 30,000 customers, according to user groups. The first six Founders Series models were delivered at the end of September. The rest of the customers will have to wait a little longer as the company said that most of the pre-orders would be finished by next year. The Tesla Model S on the other hand, has been out since 2012 and has been a hot seller in places like California and Norway. The United States is actually the leading market with over 50,000 units sold by early July 2015, followed by Norway with 8,697 units.

Elon’s prediction means that sales will continue growing over the next few years. The electric car maker hopes to get bigger in various markets, such as China, where 4,646 Model S’s had been sold through June 2015. If it all goes well there, Tesla could make that mark.


The CEO did not say when in the interview, but his words probably mean years after the Model 3 is released. Musk also added that with the Model 3, he is really confident that they can do another 300,000 or 400,000 cars per year.

Production and Factories

Those are big numbers for the company, we’ll have to wait and see with all the competition looking to gain ground on Tesla with their own electric cars. The Palo Alto company is not just talking, they are building a lithium-ion battery factory at the Tahoe Reno Industrial Center in Storey County, Nevada. The Gigafactory 1, which will be operational in 2016 or 2017, will lower the production cost for the batteries and powerwall packs by around 30 percent. The place will supply 500,000 Tesla cars per year.

Tesla has called it the Gigafactory 1 because they plan on building more factories in the future. Musk estimated that the Gigafactory 1 is not enough to supply demand and rumors say that the electric car maker could build another one in Japan or India. The island nation in the Pacific Ocean could be the top candidate because it is the second-biggest source of Tesla components after North America. India was added as a candidate a few days ago after a person on social media asked the CEO about a factory in the country and he replied that given the high local demand, a Gigafactory in India would probably make sense in the long term.




6 COMMENTS

  1. That would be interesting/impossible. Look at the facts the high price car market is very small in reality. Ferrari only sells 7k cars a year for a reason. In the current economy the number of people in the market for a 100k dollar car is shrinking. We are in a golbal downturn, the reality of a car with a 40k dollar battery is a joke. 8-10 years is the projected battery life (current example) so at the time when most sell/upgrade the car will be worthless. 40k car needing a 40k battery.. Great car but its a rich boy toy, not ready for prime time.. just too expensive to buy and operate, electricity isnt free.. costs the same to charge as a car that gets 20 mpg.. Hate to throw reality on your dreams but I see this ending badly..

    • Sources???? LG Chems batteries are $145 a kwh X 90 kwh = $13K. Not to mention they will be cheaper in the future, when they *may* need replacing, but the vast majority will last the life of the car and will have resale value after the life of the car.

      • Life of the car???? Lets see how that work as there have been quite a few replaced under warranty. Ohh and the 145$ per kwh is for the cells not the pack you still have to put all the cells together into a pack for the car and install it. Neither of which can be done by anyone but Tesla. GM would love this monopolistic business model.

        Tesla has never said what there cost to produce the cells in nevada will be??? Cheeper than LG chem ????? I dont think so…..

    • Why people keep talking about all those wrong numbers? Is it just bashing or because some paid bashers did a really effective job?

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